UAE Tax & Compliance Glossary
A plain-English guide to UAE tax, VAT, corporate law and financial-compliance terminology — so you always know exactly what your advisor is talking about.
A
Accounting Period
The span of time a set of financial statements covers — usually a 12-month financial year for UAE businesses.
AML (Anti-Money Laundering)
Laws and procedures that stop criminals from disguising illegally obtained funds as legitimate income; mandatory for many UAE businesses.
Audit
An independent examination of a company's financial records to confirm they are accurate and compliant.
Audit Trail
A step-by-step record that traces every transaction from its source document through to the financial statements.
B
Backlog Accounting
Catching up and reconciling bookkeeping for past periods that were never properly recorded.
Balance Sheet
A snapshot of what a business owns (assets) and owes (liabilities) at a single point in time.
Bookkeeping
The day-to-day recording of a business's financial transactions.
Business Registration
The legal process of incorporating and licensing a company to operate in the UAE.
C
Corporate Tax (CT)
A federal tax on the net profit of UAE businesses — 0% on taxable income up to AED 375,000 and 9% above it.
CT Return
The annual filing in which a business declares its taxable income and Corporate Tax due to the FTA.
Compliance
Meeting all of the legal, tax and regulatory obligations that apply to your business.
Chart of Accounts
The organised list of all the accounts a business uses to record its transactions.
CFO Services
Outsourced chief-financial-officer expertise — strategy, reporting and planning without a full-time hire.
D
Deregistration (VAT / CT)
Formally cancelling a VAT or Corporate Tax registration when a business is no longer eligible or required to hold it.
Due Diligence
A thorough financial and legal review of a business, typically carried out before a transaction or investment.
Dubai Mainland
A company licensed by the Department of Economy & Tourism that can trade freely anywhere in the UAE.
E
EmaraTax
The FTA's online portal for VAT and Corporate Tax registration, filing and payments.
Emirates ID
The mandatory national identity card for UAE residents, required for most business and banking processes.
ESR (Economic Substance Regulations)
Rules requiring certain UAE entities to demonstrate real, adequate economic activity within the country.
F
FTA (Federal Tax Authority)
The UAE government body that administers and enforces VAT and Corporate Tax.
Financial Audit
An independent audit of a company's financial statements that gives stakeholders confidence in the numbers.
Financial Statements
The formal reports — balance sheet, profit & loss and cash flow — that summarise a company's finances.
Free Zone
A designated economic area offering benefits such as 100% foreign ownership and customs advantages.
FZE (Free Zone Establishment)
A limited-liability company formed by a single shareholder within a free zone.
G
goAML
The UAE's online platform for submitting anti-money-laundering reports, such as suspicious transactions.
General Ledger
The master record containing all of a business's financial accounts and transactions.
Gross Profit
Revenue minus the direct cost of the goods or services sold, before overheads.
I
Input Tax
The VAT a business pays on its purchases, which can often be reclaimed.
Internal Audit
A review of a company's own controls, processes and risks to improve how it operates.
Invoice
A document requesting payment for goods or services that have been supplied.
L
Liable Person
A person or entity legally responsible for paying a particular tax.
Licenced Tax Agent
An FTA-approved professional authorised to deal with the tax authority on a client's behalf.
M
MOF (Ministry of Finance)
The UAE ministry responsible for federal fiscal policy and tax legislation.
Management Accounts
Internal financial reports prepared regularly to help owners and managers make decisions.
N
Net Profit
What remains after all costs, expenses and taxes are deducted from revenue.
Non-Resident Person
A person or business taxed in the UAE only on income that has a UAE source.
O
Output Tax
The VAT a business charges its customers on taxable sales.
Offshore Company
A company registered in the UAE for holding or international business rather than local trade.
P
Payroll
The process of calculating and paying employee salaries, including any deductions.
PRO Services
Public-Relations-Officer services that handle government paperwork such as visas and licensing.
Profit & Loss Statement
A report showing revenue, costs and the resulting profit or loss over a period.
Q
Qualifying Free Zone Person
A free-zone business that meets the conditions to benefit from the 0% Corporate Tax rate on qualifying income.
R
Registered Person (VAT)
A business registered with the FTA for VAT and issued a TRN.
Revenue
The total income a business earns from its normal activities, before costs are deducted.
S
Small Business Relief
A Corporate Tax relief letting eligible small businesses be treated as having no taxable income for a period.
Sole Establishment
A business owned by one individual who bears full personal liability for it.
Supply (VAT)
Any sale of goods or services that may be subject to VAT.
T
Tax Group
Two or more UAE companies treated as a single taxable person for Corporate Tax purposes.
Tax Invoice
A VAT-compliant invoice that contains all the details the FTA requires.
Tax Period
The period for which a tax return is prepared and filed.
Tax Registration Number (TRN)
The unique number the FTA issues to a business registered for VAT or Corporate Tax.
Transfer Pricing
Rules ensuring transactions between related parties are priced as if between independent parties.
U
UAE Corporate Tax Law
The federal legislation governing Corporate Tax in the UAE, effective for periods from June 2023.
Unregistered Person
A business not registered for VAT, and therefore unable to charge or reclaim it.
V
VAT (Value Added Tax)
A 5% consumption tax applied to most goods and services in the UAE.
VAT Return
The periodic filing that reports output and input VAT to the FTA.
VAT Refund
A claim to recover input VAT that exceeds output VAT for a period.
Vatable Supply
A supply of goods or services on which VAT is charged, whether at the standard or zero rate.
W
Working Capital
The funds available for day-to-day operations — current assets minus current liabilities.
Withholding Tax
Tax deducted at source on certain payments; the rate is currently 0% in the UAE.
Z
Zero-rated Supply
A taxable supply charged at 0% VAT, such as certain exports — still reported and still reclaimable.
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